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COC 203A(20102007)amended 16 3 2012

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  • COMPARISON BETWEEN PWD

    203A (REV. 1/2010)&PWD 203 A

    (2007)

    Prepared By:

    Nurfidatul Ema bt Saaidin

    Bsc (Hons) QS UiTM

    Penolong Pengarah Kanan (Ukur Bahan)

    : [email protected]

    1

    Hanawati bt. Hashim

    Bsc (Hons) QS UiTM

    Penolong Pengarah Kanan (Ukur Bahan)

    : [email protected]

  • COMPARISON BETWEEN PWD 203A

    (2007) / PWD 203A (REV. 1/2010) (CONTD)

    PWD 203A (Rev. 1/2010) consist of 81 clauses compared with PWD 203A (Rev. 2007) with only 78 clauses.

    Additional 3 new clauses, pertinent ones being:

    i. Events & Consequences of Default by the Government (Cl. 55)

    ii. Safety At The Site (Cl. 68)

    iii. Advance Payment (Cl. 69)

    Additional of sub-clauses under clause 12 & clause 40

  • 1.0 INTRODUCTION

    1.1 Background

    The JKR.PWD Forms were last revised in 1983: almost a quarter of

    century ago.

    Since then, numerous changes have occurred legally and in practice.

    The Forms became anachronistic and out of tandem wit

    contemporary practice

    Steps were initiated a number of years ago to revise these Forms: a

    process formally approved by the AGs chambers

    These resulted first in the JKR /PWD Forms(Rev.2007) which were

    officially launched in 2008

    These new Forms, were further revised with the JKR/PWD

    Forms(Rev.1/2010) and officially launched on 24th June 2011

    Current, these are the Forms that have to be used for all Public

    Sector Projects and apparently for other applications involving

    statutory bodies and the like.

  • 1.2 FORMS REVISED

    For Traditional General Contracts

    For Package Deal Types Of Contrtact

    Old Forms New Form Application

    1. JKR 203A(Rev.83) JKR 203(Rev.1/2010) COC for BQ Contracts

    2. JKR 203(Rev.83) JKR 203(Rev.1/2010) COC for Contracts based

    on Drawings &

    Specifications

    3.JKR 203N(Rev.83) JKR 203N(Rev.1/2010) COC for NSC where Main

    Contract is based on JKR

    203 &203A

    4.JKR 203P(Rev.83) JKR 203P(Rev.1/2010) COC for nominated

    supplier where Main

    Contractor is based on JKR

    203&203A

    Old Forms New Form Application

    PWD DB/T(2002 Edn) PWD DB(Rev.1/2010) COC for Design & Build

    Contract

  • Old Form New Form Change

    Rev.2007 Rev.1/2010

    56 78 81 Additonal 22

    Clauses (3)

    1.3 NUMBER OF CLAUSES JKR 203A

    JKR 203

    JKR DB

    Old Form New Form Change

    Rev.2007 Rev.1/2010

    56 78 81 Additonal 22

    Clauses (3)

    Old Form New Form Change

    Rev.2007 Rev.1/2010

    62 76 79 Additonal 14

    Clauses (3)

  • Old Form New Form Change

    Rev.2007 Rev.1/2010

    37 50 50 Additonal 13

    Clauses (3)

    JKR 203N

    JKR 203

    Note: For the JKR 203N, the clause 41.0 in the Rev.2007 Forms has been

    deleted and a new Clause 5.0 added in the Rev. 1/2010 Form.

    Old Form New Form Change

    Rev.2007 Rev.1/2010

    37 37 37 No Change

  • COMPARISON BETWEEN PWD 203A

    (REV. 2007) / PWD 203A (REV. 1/2010)

    (CONTD)

    PWD 203A (1/2010)

    Consist only of 1 Addendum

    - Termination on Corruption.

    PWD 203A (2007)

    Consist only of 1 Addendum

    - Termination on Corruption.

    Addendum to COC

  • COMPARISON BETWEEN PWD 203A (REV.

    2007) / PWD 203A (REV. 1/2010) (CONTD)

    PWD 203A (Rev. 1/2010)

    Consist of 1 Sp. Provision - Variation Of Price (Performance Bond, Advance Payment excluded as Sp. Provision)

    PWD 203A (Rev. 2007)

    Consists of 3 Sp. Provisions

    (Performance Bond excluded as Sp. Provision)

    Special Provisions to COC

  • Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    1.0 Definitions And Interpretation

    1.1 : Definitions

    1.2 : Interpretation

    1.0 Definitions And

    Interpretation

    2.0 Contract Period

    Clearly define the contract period, D/Possession and

    D/Completion.

    2.0 Contract Period

    3.0 The S.O and S.Os Representative

    3.1: Duties of S.O and S.Os Representative 3.2: S.Os Representative 3.3: S.Os Authority to Delegate

    3.0 The S.O and

    S.Os Representative

    4.0 S.Os Right to Take Action

    4.0 S.Os Right to Take Action

    Difference

    5.0 S.Os Instruction Must be in writing Variations, discrepencies ,in contract, removal of mat. from site ,defect work, others. 5% on-cost charges

    5.0 S.Os Instruction 9

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 10

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    6.0 Scope of Contract

    -Construct and complete,using

    materials,goods

    and workmanship,quality as specified in

    accordance specified making good

    defects

    - Making good defects

    - Poor governing

    consequential works under sub clause 6.2

    6.0 Scope of Contract

    Difference

    7.0 Contract Sum

    Stipulates the contract sum.

    7.0 Contract Sum

    8.0 Contract Documents

    8.1 : Documents required in 2 sets, one

    original with S.O. and contractor

    8.2 : S.O will issue instruction regarding any

    discrepancies in the contract document.

    8.0 Contract Documents

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 11

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    9.0 Representation, Warranties and Undertakings of the

    contractor.

    9.1 : Representation and warranties.

    Listing out the requirements of a contractor before he enters

    into a contract with the government, among others,

    registered with CIDB, PKK, ROC, technically and financially

    competent, no legal litigation, arbitration, tax claim, dispute

    9.0 Representation,

    Warranties and

    Undertakings of

    the contractor.

    10.0 Obligation of the contractor

    Obligation of the contractor:

    - construct, complete, test and commission

    -comply with all contractual requirements,

    -Protect governments interest, provide qualified staffing and workers, supervision, making good defects etc.

    -Carry out any other obligations and responsibilities under

    this contract.

    10.0 Obligation of the

    contractor

    Difference

    11.0 Inspection of Site

    Contractor must visit the site, take note of all risk involved,

    access roads, working constraints, etc., especially factors

    with cost implication. Information given in document may not

    be conclusive, may not relieve the contractor of his

    obligation under the contract.

    11.0 Inspection of Site

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 12

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    12.0 Programme of Work.

    Within 14 days from LA, contractor must submit his working

    programme to the S.O. for approval.

    Need to be adjusted/modified during the construction if

    necessary or when EOT is given under the contract.

    12.0 Programme of

    Work.

    Difference

    13.0 Performance Bond/ PGB

    -5% of the C/Sum,valid until 12 mths after DLP/CMGD

    whichever is earlier, failing which, WJP will apply.

    -WJP is 10% deduction made on every progress payment

    s,up to a max. of 5% C/Sum.

    -50% of WJP may be released upon CPC, at the discretion

    of S.O. Any claims made during construction, contractor will

    be required to top up value at any time must be 5% of

    C/Sum.

    13.0 Performance Bond/ PGB

    14.0 Indemnity in respect of personal injuries and damage to

    property.

    It is the duty of the contractor to keep the government (and

    agents) indemnified against all manners of claims & actions

    pertaining to works on site.

    14.0 Indemnity in

    respect of personal

    injuries and

    damage to

    property.

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 13

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    15.0 Insurance against personal injuries and damage to property.

    -Effect and maintain insurance to cover his liabilities

    -Bear the excess amount as stipulated in Appendix

    -Period of cover until CMGD.

    -In case of failure, the Govt may extent the insurances on

    behalf of the contractor, the cost of which shall include 5%

    (on-cost charges).

    -Cancellation of insurance is made 30 days after receipt of

    notice by the government.

    -Where claims exceed insured amount, the surplus shall

    be borne by contractor.

    -It stipulates a notification procedure and obligation the

    contract to ensure a mandatory procedure is followed any

    cancellation process

    -It improses a positive duty on the contractor to ensure

    that any insurance cover is not vitiated or rendered void or

    voidable.

    15.0 Insurance against personal injuries and damage to property.

    16.0 Indemnities to the government in respect of claims by work men.

    16.1 : Workmen Compensation.

    Provides coverage for the Govt and officers against

    claims by any workman.

    16.0 Indemnities to the government in respect of claims by work men.

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 14

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    17.0 Employees Social Security Act 69 (5% on cost-charges) 17.1 Register with SOCSO 17.2 Contribution to SOCSO 17.3 Default in complying with SOCSO

    17.0 Employees Social Security Act 69

    18.0 Insurance of work

    - Effect and maintain insurance to cover against

    loss and damage by fire, lightning,

    -Bear the excess amount as stipulated in Appendix

    -Period of cover until completion of the works.

    -In case of failure, the Govt may extent the

    insurances on behalf of the contractor, the cost of

    which shall include 5% (on-cost charges).

    -Cancellation of insurance is made 30 days after

    receipt of notice by the government.

    -Where claims exceed insured amount, the surplus

    shall be borne by contractor.

    -It stipulates a notification procedure and obligation

    the contract to ensure a mandatory procedure is

    followed any cancellation process

    18.0 Insurance of work

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 15

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    19.0 Setting out

    Contractor is responsible over proper setting out and

    for the correctness of positions, levels, dimensions &

    alignments. In the event of any error, the contractor

    shall rectify at his own expense said errors to the

    satisfaction of the S.O.

    19.0 Setting out

    20.0 Unfixed materials and goods.

    - Materials delivered to site cannot be removed

    without the consent of the S.O.

    - Upon payment, the material & goods become the

    property of the GOVT but still remains the

    responsibility of the Contractor.

    20.0 Unfixed materials and

    goods.

    21.0 Compliance with the law

    - Contractor must comply with any law, regulation or

    bye-law that constitutes the current Statutory

    Requirements.

    - In the event of any change or amendment, the

    contractor must obtain the written instruction from

    the S.O. so as to enable the consideration of such

    variation.

    21.0 Compliance with the law

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 16

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    22.0 Cl. 22.0 : Design 22.1 : Design Liability - As requested by Government, NOT proposal from contractor. - Allows stand alone design by the contractor which must be suitable, functional, safe & compatible with the existing design supplied by the Govt.

    - This clause emphasizes the contractors liability in ascertaining that his stand-alone design has been undertaken, approved &

    endorsed by a competent & registered

    professional.

    - Contractor to be fully responsible.

    -Contractor to provide design G.Bond for the parts of

    designed covers incidental issues such as the

    amount, duration to cover, conditions of involving,

    default provisions.

    22.2 : Design Guarantee Bond

    - Contractor is to provide a bond equal to 5% of

    the said component of works and submitted

    once CPC is issued.

    - It must have a validity of 5 years.

    22.0 Cl. 22.0 : Design

    Difference

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 17

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    23.0 Employment of Workmen. 23.1 : Workmen Restricted to Msian citizens unless proven unavailable. Applies to sub-contractors.

    23.2 : Compliance Employment

    Act 55 (PERKESO) 23.3 : Days and hours of working

    Approval for overtime must be

    obtained from S.O. the cost borne

    by the contractor.

    23.4 : Wages Books and Times Sheets.

    23.5 : Default in payment of wages.

    Any claims by workmen filed to Dept. of

    Labour can be paid out by S.O. to be

    deducted from monies due to contractor.

    23.6 : Discharge of workmen.

    S.O has the right to remove from site any

    workman he deems incompetent.

    23.0 Employment of Workmen.

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 18

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    24.0 Variation

    Definition of variation:

    A change in the contract Document arising from the alteration or

    modification of the design, quality or

    quantity of the Works; including

    addition, omission or

    substitution/removal from site. There is a cross reference to sub-clause 22.1

    the effect of the SOs approval of the contractors design.

    24.0 Variation

    25.0 Valuation of variation

    Contract Rates (of similar character or

    similar conditions).

    Fair Rates (of differing nature or

    differing conditions).

    Pro-rata Rates

    Day work + 15%

    25.0 Valuation of variation

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 19

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    26.0 Bills of Quantities

    - The quality & quantity from the BQ forms the

    basis of the Contract Sum.

    - The SMM (ISM) & CEMM (IEM) stipulates that

    quantity

    is considered fixed unless stated as provisional - Error in description or quantity shall be rectified &

    adjustment made to Contract Sum.

    - S.O.s right to rationalization - Percentage adjustment

    26.0 Bills of Quantities

    27.0 Measurement of work

    Outlines the method to be used in measurement of

    variation & provisional quantities to be carried out by

    contractors agent & S.O. during joint valuations.

    27.0 Measurement of work

    28.0 Payment to contractor and interim certificate. - Payment to be made monthly or as stipulated by S.O. - Only 1 payment is allowed without document contract. - Payment of material by NSS can be made up to 100%. -Material delivered TO & ADJACENT to site, not prematurely delivered.

    28.0 Payment to contractor

    and interim certificate.

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 20

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    29.0 Adjustment of Contract Sum Increase or decrease of contract sum thru variation or others must be certified by S.O. / Representative

    29.0 Adjustment of

    Contract Sum

    30.0 Fluctuation of price

    Details of V.O.P. is still explained under (Special

    Provision)

    30.0 Fluctuation of price

    31.0 Final Account and payment certificate

    - 3 months after CPC, all claims complete with

    details/supporting documents must be submitted to

    the S.O.

    - Otherwise the S.O. will proceed with the preparation

    of Final Account using current info and its issuance 3

    months after DLP or CMGD.

    - Contractor to submit Statutory Declaration to the

    Govt.

    31.0 Final Account and

    payment certificate

    32.0 Effect of S.Os Certificate

    No certificate of the S.O. under any provision shall

    release the contractor from his obligations under this

    contract.

    32.0 Effect of S.Os Certificate

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 21

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    33.0 Deduction from money due to contractor

    Govt./S.O. is entitled to deduct money owed by the

    contractor through other contracts where both are parties

    to it.

    33.0 Deduction from

    money due to

    contractor

    34.0 Prime Cost/Provisional Sum

    Adjustment of Prime Cost/ Provisional Sum allowed in

    contract and that of the actual amount must be carried

    out.

    Provisional Sum can be converted to Prime Cost Sum

    when the contractor will be doing the NSC works but he

    waivers his right for Profit and Attendance.

    34.0 Prime

    Cost/Provisional

    Sum

    35.0 Materials, Goods and Workmanship Additional testing instructed by S.O. that incurs additional cost will be paid unless the results show that the work, materials & goods are not in accordance with the contract.

    35.0 Materials, Goods and Workmanship

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 22

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    36.0 Inspection & Testing of Materials, Goods & Equipment.

    All cost involved with Inspection & Testing will be borne by the contractor except additional tests as instructed by

    the S.O. (depends on the

    results/outcome of said tests).

    36.0 Inspection & Testing

    of Materials, Goods &

    Equipment.

    37.0 Constructional Plant, Equipment, Vehicle & Machineries. Arrangement pertaining to bringing in equipment & machineries into Malaysia is solely the responsibility & obligation of the contractor. He is to deal directly with the relevant authorities and shall furnish all such documentation & approval to the S.O. when required. All cost arising from this is to be borne by contractor.

    37.0 Constructional Plant, Equipment, Vehicle & Machineries.

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 23

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    38.0 Possession Site

    Work cannot commence without

    Performance Bond/Insurances. For

    purposes of starting work, receipts

    without policies are acceptable.

    Delay (whole or in part)

    - < 90 days EOT 43.1 (g) and not entitled to claims. Delay (whole) > 90 days - Contractor agreed to proceed later (entitle to EOT & NO CLAIM) or, - Contractor terminate the contract Delay (in part) > 90 days - Contractor agreed to proceed later (entitle to EOT & NO CLAIM) or, - request SO to omit that part. (If SO refuse, entitle to claims)

    38.0 Possession Site

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 24

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    39.0 Completion of Work Contractor to notify S.O that work is completed within 14 days, S.O to inspect and issue CPC. What is practical completion? a) Work completed as specified in contract. b) Government have full, proper and beneficial use

    of the work for its intended purpose. c) Passed T & C d) Fit for occupation e) Essential services (external work)

    39.0 Completion of

    Work

    40.0 Damages for Non-Completion

    S.O is required to issue Notice to the contractor before

    LAD is imposed (no time frame to notice) as a

    proclamation of his intention.

    40.0 Damages for Non-

    Completion

    Difference

    41.0 Sectional Completion

    Involves different Completion Dates for ascertained

    portions of work as stipulated in the Appendix where the

    EOT, CPC, LAD and DLP will also be considered

    separately except Insurances, PB, Final Payment.

    41.0 Sectional

    Completion

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 25

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    42.0 Partial Occupation/ taking over by government. Govt with the consent of contractor shall take possession & occupy the completed component of works. Certificate of PO will be issued, DLP will start from the day of handing over followed by CMGD. LAD amount will be reduced proportionately corresponding to the value of said component. Value & period of insurances remain the same.

    42.0 Partial Occupation/ taking over by government.

    43.0 Delay & Extension of time Cl. 43(c) Suspension of work under Cl. 50 Reasons: EOT 43 (a) (j) total: 10 Highlight:- -Delay is not brought about by delay of non-performing NSC. -Contractor has proven he has mitigated the delays. -Does not constitute failure on part of contractor.

    43.0 Delay & Extension of time

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 26

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    44.0 Claims for loss and expenses

    Claims arising from delay (EOT) due to:-

    43.1 : (c) Suspension of Works (d) S.O. instructions & neighboring disputes

    (e) S.O. instruction under Cl. 5 (f) delay caused by S.O (h) delay by 3rd party appointed by Govt.

    44.0 Claims for loss and

    expenses

    45.0 Investigation by government and other persons

    in case of accidents, failure or other event.

    Allows 3rd party to investigate where the

    contractor is to provide full cooperation,

    assistance & facilities as may be required.

    45.0 Investigation by

    government and other

    persons in case of

    accidents, failure or

    other event.

    46.0 Access for work

    S.O/ Rep or 3rd party appointed by Govt must be

    given access to site, fabrication factories,

    warehouses, etc related to material & goods to be

    used in project.

    46.0 Access for work

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 27

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    47.0 Sub-Contract or Assignment

    Contractor must obtain the consent of S.O. before

    sub-contracting the work. Contractor still fully

    responsible over the contract & the default of his

    sub-contractors.

    Assignment of contract or part is not allowed

    except for banks/institutions as consented by the

    S.O.

    47.0 Sub-Contract or

    Assignment

    48.0 Defects After Completion No On-Cost charges

    - In case of failure to rectify by Contractor, S.O.

    can appoint 3rd party where the cost of rectification

    plus 10% on cost charges will be claimed from the

    contractor.

    -Diminution in value of Defect work

    -Certificate of Making Good Defects.

    48.0 Defects After Completion

    No On-Cost charges

    DLP (12 Mths)

    14 Days

    3 Mths

    CMGD Completion

    Date

    Final list

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 28

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    49.0 Unfulfilled Obligations

    Although the CMGD has been issued, contractor

    remains liable to fulfill all obligations incurred prior

    to the issue of said certificate.

    49.0 Unfulfilled

    Obligations

    50.0 Suspension of Works

    50.1 : Suspension and Resumption To overcome

    problems arising from PBT & funding.

    Officer named can issue instruction to suspend work.

    Contractor to continue with his other obligations

    including site security, repair of damages and show

    initiative in cutting costs within said period.

    50.2 : Extension of Time Contractor can apply for EOT

    Cl. 43(c).If suspension exceed 12 months mutual

    termination can be considered.

    50.3 : Consequences of Mutual Termination Contractor

    paid up to works carried out and

    no claims made to PB

    50.0 Suspension of Works

    Difference

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 29

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    51.0 Events and Consequences of Default by Contractor 2 termination scenarios:

    51.1.Default of Obligation by Contractor

    -Failure to start work within 2 weeks of L.A (new)

    -Suspend or abandon work

    -Failure to proceed regularly & diligently

    -Failure to execute work in accordance to contract

    -Persistently/continuously neglects to carry out obligations

    -Failure/refusal to comply to S.O.s instructions -Failure to comply with Cl. 47 (Sub-Contract)

    The named officer will issue a 14-day notice, failure of which will

    effect termination proceedings.

    Implications of termination will be similar to Cl. 51 of the old COC.

    Contractor must vacate site and Govt will seize PB/ WJP and

    initiate retendering & claim of completion cost.

    51.2. General Default

    - General default includes contractors bankruptcy, winding up orders & court instruction to freeze contractors asset. - Govt can terminate contract by first issuing a 14-day notice.

    - Similar in implication with Cl. 51.1

    Contractor must vacate site and Govt will seize PB/WJP and

    initiate

    retendering & claim of completion cost.

    51.0 Events and

    Consequences of

    Default by

    Contractor

    Difference

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010) (CONTD)

  • 30

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    51.0 Events and Consequences of Default by Contractor (contd) Stop Work Carry out protective work Remove personnel Vacate site Terminate his sub-contractors Return all plans/documents etc Pay losses/damages to the Government.

    51.0 Events and Consequences of Default by Contractor (contd)

    52.0 Termination on National Interest

    What constitutes National Interest?

    Must not imply that the Govt is trying to be

    relieved of its contractual obligations &

    liabilities. (PBT is not national interest and

    national security cannot be compromised!).

    Govt will not seize Bond upon

    termination.Contractor will be paid whatever

    works carried out without claims made to the

    PB.

    Contractor stop work/remove/personnel/vacate site

    52.0 Termination on National

    Interest

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 31

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    53.0 Termination on Corruption

    If the contractor, his personnel or sub-

    contractors is proven guilty of corruption

    relating to the Works, the contract may be

    terminated after notice has been issued.

    PB will be forfeited and claim on completion/

    retender cost will be made (Cl. 51.1)

    53.0 Termination on

    Corruption, unlawful &

    illegal activities

    Difference

    54.0 Payments Upon Termination

    If termination is due to Cl. 50 (Suspension of

    Works) or Cl. 52 (Termination on National

    Interest), payment to contractor shall be:

    a)Works carried out until date of termination.

    b)Inclusive of partly completed works

    c)Cost of materials/goods reasonably and

    has/will be

    delivered to site.

    d)Expenses reasonably incurred by contractor in expectation of completing the

    works.

    e)Costs involved in handing over the project

    back to the Govt.S.O to prepare and issue a

    Final Account to the contract.

    54.0 Payments Upon

    Suspension

    &Termination On

    National Interest

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 32

    Claus

    e

    JKR 203A Rev 2007 Claus

    e

    JKR 203A Rev. 1/2010

    55.0 Certification of Termination Costs.

    To be prepared upon termination,

    taking into consideration the following:

    i) Payments made to contractor

    ii. 3rd party payments to complete works

    iii. Other costs related to completion

    10% On- Cost Charges

    55.0

    Events & Consequences Of Default by

    The Government

    (new clause)

    Difference

    56.0 Surviving Right

    In the event of termination, liabilities of both

    parties within the contract period will still

    stand.

    56.0 Certification of Termination Costs.

    57.0 Effect of Force Majeure

    A situation in which both Govt & Contractor are

    unable to fulfill their obligations under

    contract e.g.

    war, riot, earthquake etc. Contract will be

    terminated

    with mutual agreement by both parties where

    neither

    will be entitled to any claims.

    57.0 Cl. 57.0 : Surviving Rights

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 33

    Clause JKR 203A Rev 2007 Clause

    JKR 203A Rev.

    1/2010

    58.0 Site Agent and Assistants

    Contractor to employ a competent, efficient suitability

    qualified site agent, able to receive instructions from S.O

    on site.

    58.0 Effect of Force Majeure

    59.0 Nominated Sub-Contractor and Nominated Supplier

    S.O shall call tenders for items under Provisional Sum or

    P.C sum in the contract. Contractor may object

    nominations with valid reason. S.O may appoint sub

    contractor and enter into a direct contract by way of

    omission or instruct M/Contractor to execute the works.

    59.0 Site Agent and

    Assistants

    60.0 Payment to NSC and/ NS

    Ensure direct payments to NSC.No Deed of assignment

    is needed.

    60.1 SO shall obtain tenders for NSC/NS in respect the PCS/PS are included in BQ.

    - Contractor shall on the written insruction by the

    SO enter into such sub contract with the WS/NSC

    60.0 Nominated Sub-

    Contractor and

    Nominated Supplier

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 34

    Claus

    e JKR 203A Rev 2007 Clause JKR 203A

    Rev. 1/2010 61.0 No Liability of government to NSC and NS

    There is no warranty of contract between

    government and NSC.

    61.0 Payment to NSC and/

    NS

    62.0 Responsibility of Contractor to NSC and NS Contractor is fully responsible over NSC, he may terminate the NSC with consent from S.O. and may appoint a new NSC at no extra cost to the government.

    62.0 No Liability of government to NSC and NS

    63.0 Intellectual Property Rights

    Copyright and proprietary rights ,related to the Works,

    shall be the property of Government. Contractor must

    indemnify Government from all claims. if any.

    63.0 Responsibility of Contractor to NSC and NS

    64.0 Antiquities

    All discovery of objects of interest or value during

    construction shall be the absolute property of the

    Government. Contractor to inform S.O. immediately who

    in return will issue instruction as what is to be done.

    Contractor will be reimbursed

    64.0 Intellectual Property

    Rights

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 35

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev. 1/2010

    65 Arbitration

    Both parties can now refer any disputes

    toArbitration.

    65.0 Antiquities

    66 Notices Notices shall be effected by; i. Hand delivery or courier,acknowledge

    receipt.or ii. Leaving notices at the registered

    address in the contract or iii. Registered post,deemed to have

    received, 7 days from date of posting.

    Onus on Contractor to inform of any change in address.

    66.0 Arbitration

    67 Amendments

    No amendments to be made to this

    agreement unless made by mutual consent

    by way of a supplementary agreement.

    67.0 Notices

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 36

    Claus

    e JKR 203A Rev 2007 Clause JKR 203A

    Rev. 1/2010 68.0 Confidentiality

    Contractor must not disclose to third party all matters

    pertaining to the contract unless;

    - to the bank/financial institution ,raising funds.

    - to the consultants appointed for the project.

    - as required by law in the country.

    68.0 Safety At Site

    Difference

    69.0 Stamp duty

    Now, Contractor is required to pay for all stamp duty

    charges.

    69.0 Advance Payment

    Difference

    70.0 Severability

    73.0 Severability

    71.0 Waiver 74.0 Waiver

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • 37

    Clause JKR 203A Rev 2007 Clause JKR 203A Rev.

    1/2010

    72.0 Laws applicable

    75.0 Laws applicable

    73.0 Successors Bound 76.0 Successors Bound

    74.0 Epidemics and medical attendance 77.0 Epidemics and Medical Attendance

    75.0 Technology Transfer 78.0 Technology Transfer

    76.0 General duties and Performance Standard

    -Maintain site clean and sanitary condition

    -Comply will all requirement of the

    government health and sanitary authorities.

    79.0 General duties and Performance Standard

    77.0 Restriction on imported materials and

    goods

    80.0 Restriction on imported

    materials and

    goods

    78.0 Time

    81.0 Time

    COMPARISON BETWEEN PWD 203A (2007) / PWD 203A (Rev. 1/2010)

    (CONTD)

  • OTHERS

    Appendices

    Addendum

    Special Provisions

  • 39

    THANK YOU

  • 40

    Clause Differences

    4.0

    6.0

    Clause 4.1(a) is replaced to sentence in clause 4.1(b)

    Clause 4.1(b) is replace to sentence 4.1(a) and provisions 40, 43 and 65 has been deleted

    and addition of provision 57 and 66 in this clause.

    Additional of term in accordance with best industry practice.

    Word must replaced by shall

    10

    COC Rev. 2007

    COC Rev. 1/2010

    Clause 10.0(a) mentioned the contractor need to comply the works accordance to the

    specification, contract dwgs, and other documents specified in contract.

    12

    COC Rev. 2007

    COC Rev. 1/2010

    New sub provision 12.1(a), (b) The provision specified the need of contractor to submit

    the Work

    Programme to the SO that shows detail activities of wk, methods of

    construction proposed to adopt.

    'New provision 12.2 (i), (ii) & (iii), It stipulates define periods for the submission and

    approval of the programme plus consequences for the SOs default. (to approve or reject or request further informations to clarify on the Work

    Programme submit by the contractor)

    'New Provision 12.3, 12.4, 12.5 requires the contractor to resubmit the Work

    Programme if request for. The submission to and approval by the SO does

    not relieve the contractor of any his responsibilities under the contract.

    69

    COC Rev. 2007

    COC Rev. 1/2010

    New Provision regarding the value of advance payment, conditions to be

    followed by the contractor & deduction of advance payment to be made in

    interim certificates.

  • 41

    Clause Differences

    22.1 (a)

    22.1(b)

    22.1(c)

    22.2(a)

    22.2(b)

    22.2(c)

    22.2(d)

    COC Rev. 2007

    COC Rev. 1/2010

    Term intergrates has been added.

    A need of contractor to submit the related particulars ie. Dwg, specs, calculation &

    other doc. Pertaining to stand alone design.

    Rephrase of clause 22.1 (c) & (d). The contractor shall be fully responsible and

    guarantee the Govn. Of the Stand Alone Design, integration, execution of the works,

    material and workmanship for the works are independent from any fault, suitable,

    functional, safe & compatible with Govn's requirement.

    'additional term - 'stand alone 'The Design Guarantee Bond Act as a security for the contractor's obligation and

    warranties which valid for a period of 5 years from the date of CPC.

    'additional term 'imperfection, shrinkage' due to defects in the stand alone design.

    'the Govn. has the right to claim from PB the sum of equal to 5% of the value of the

    said part of the works or such part thereof as maybe demanded.

    New clause The contractor need to extend security if the DGB were to expire.

  • 42

    Clause Differences

    40.0

    40.2

    40.3

    40.4

    COC Rev. 2007

    COC Rev. 1/2010

    Few sentences related to this provision has been deleted

    Provision is improved by mentioned the right of Government to terminate the

    contract and recover LAD from the contractor from any money due/become

    due/ form Performance Bond/ as a debt due.

    New Provision related to LAD that is amount of loss which Government will

    suffer because of breach of contract by the contractor.

    New Provision which not relieve the contractor from his liabilities and

    obligations under the contract even though deduction such LAD has been

    made.

    50

    COC Rev. 2007

    COC Rev. 1/2010

    The term 'officer named in the appendix' has been replace to SO.

    51.1 (a) (ii)

    51.2(b) (ii)

    COC Rev. 2007

    COC Rev. 1/2010

    The need to fill in the no of days of work been suspend

    Rephrase of previous provision. The clause strictly mentioned that contract

    shall not be entitled to any form of losses i.e lost of profit, damage claim etc.

    upon termination of the contract.

  • 43

    Clause Differences

    53.1

    53.2

    53.2 (c)

    COC Rev. 2007

    COC Rev. 1/2010

    The new term ' unlawful & illegal activities' has been inserted.

    53.1 (a) replaced to 53.1

    53.1 (a) (i)& (ii) in COC 2007 has been deleted

    53.1(b) change to 53.2

    53.2(b)(iii) change to 53.2 (c)

    Rephrase of previous provision. The clause strictly mentioned that

    contract shall not be entitled to any form of losses i.e lost of profit,

    damage claim etc. upon termination of the contract.

    55

    COC Rev. 2007

    COC Rev. 1/2010

    New Provision allows the contractor to terminate the government because

    of fails to fulfill any obligation which affects the works & consequences of

    such termination.

    68

    COC Rev. 2007

    COC Rev. 1/2010

    COC Rev. 1/2010

    New Provision regarding the compliance of safety requirement,

    submission of safety report to Govn, appointment of qualified Safety

    Officer and to provide safety measure at site.


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